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EXHIBIT 99.4
Life Financial Corporation Receives Approval of New Executive Management
from OTS
Riverside, California, September 26, 2000 --- Life Financial Corporation
(NASDAQ:LFCO) ("Life Financial"), parent company of Life Bank ("Life Bank"),
announced that the Office of Thrift Supervision (the "OTS") has approved the
election of Steven R. Gardner as the President and Chief Executive Officer, and
Roy L. Painter as the Chief Financial Officer, of Life Financial and Life Bank.
Additionally, it was announced that on September 25, 2000, Life Financial
consented to the issuance of an Order to Cease and Desist (the "Order") by the
OTS. The Order requires Life Financial, among other things, to contribute $5.2
million to the capital of Life Bank not later than December 1, 2000, subject to
extension by the OTS. Life Financial is also required to observe certain
requirements regarding transactions with affiliates, books and records, tax
sharing arrangements with Life Bank and the maintenance of a separate corporate
existence from Life Bank.
Also, on September 25, 2000, Life Bank entered into a Supervisory Agreement
with the OTS. The Supervisory Agreement requires Life Bank, among other things,
to achieve a core capital of at least 6% and a total risk-based capital of at
least 11% by March 31, 2001. In calculating these capital ratios, Life Bank must
risk weight all sub-prime loans it holds at double the regularly prescribed risk
weighting. The Supervisory Agreement also requires that Life Bank add at least
two new independent members to its Board of Directors, not pay dividends without
OTS approval and revise many of its policies and procedures, including those
pertaining to internal asset review, allowances for loan and lease losses,
interest rate risk management, mortgage banking operations, liquidity, separate
corporate existence, loans to one borrower and oversight by the Board of
Directors.
Life Financial and Life Bank are required to furnish quarterly reports to
the OTS detailing their compliance, or failure to comply, with the Order and the
Supervisory Agreement.
Life Financial has retained Keefe, Bruyette & Woods as its financial
advisor in connection with the Order and the Supervisory Agreement.
For more information, e-mail your request to [email protected]. Please
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include your phone, facsimile and mailing address
CONTACT: Life Financial Corporation, Riverside
Steven Gardner, 909-637-4110
Or
Roy Painter, 909-637-4095
[email protected]
